Funding Sources for
There are only two programs known that provide funding specifically for „green building‟.
These include the Kresge foundation‟s Green Building challenge for non-profit efforts and the
Green Communities Funding. The Green Communities began as a five-year, $550 million
fund to build more than 8,500 homes across the country that provide significant health, economic
and environmental benefits to low-income families and communities.
Typically „green building‟ is too broad an issue to have funding targeted to this effort. To locate
funding, it is best to consider each of the design benefits and features. Green buildings have the
potential for multiple benefits on the building, the occupants and the environment.
Potential benefits include:
The site selection and design may impact former brownfields, incorporate green spaces, trails, or other
aspects that connect to the community design or redevelopment.
Any of the features of a green building may be used for education or demonstration to the public.
Energy Efficiency - Urban Heat
Green and reflective roofs, plantings in the parking lot and other tips cool the surrounding urban area as
well as the building. This translates into energy efficiency and building comfort.
Recreation – Transportation - Health
Encouraging biking, or installing green trails and roofs and using less toxics can provide a reduction in
transportation emissions, a healthier staff or public, pleasant views and relaxed atmosphere.
Green roofs, permeable pavers, bioswales, rain gardens, using rain water for toilets, cisterns for irrigation,
all reduce stormwater. Stormwater reduction means a reduction in the:
o quantity in the municipal stormwater sewers and infrastructure; and
o quantity fluctuations in rivers and streams (scouring impacts on fisheries, area flooding and
These are just some of the benefits and impacts that green buildings have. With the specifics of
your project in mind, consider whether the following grants and loans are applicable.
Brownfield Redevelopment Tax Credits
Effective April 8, 2008, Act 89, PA 2008 amended the Brownfield Redevelopment tax credits.
Among other changes, the revisions included an increase in the credits available and added
“sustainable development” as one of several criteria.
DEQ Financial Assistance, Grants, and Loans
This web site contains a link for the catalogue of information on the grants and loans
administered by the Department of Environmental Quality. This can be searched for the type of
grant or loan. For example:
Small Business P2 Loans
The Small Business Pollution Prevention (P2) Loan Program provides loans of up to
$400,000 at an interest rate of 5% or less to businesses with fewer than 500 employees.
This loan program may be used for some aspects of green building but the project must
be able to measure an environmental improvement or pollution prevention achieved.
Stormwater related - Non-point source grants – for municipalities and non-profits for
projects such as that listed under stormwater reduction above.
Other DEQ grants may be applicable – check the complete resource linked above.
DNR - Department of Natural Resources Grants
Fisheries funding may be applicable if there is a significant reduction in the stormwater impact
on the rivers and streams. Recreation funding may be applicable if the project connects with or
involves a community trail or system. Check the DNR grants if these topics are applicable.
Energy Funding Sources
Energy Office funding announcements Funding FAQ
The Michigan Energy Office has some funding suggestions for energy efficiency projects.
The Community Energy Project Grants provide funding to non-profit and public organizations for: 1)
Solar and/or wind energy education, 2) Bioenergy/biofuels/bioproducts education, 3) Green
commuting projects, 4) Green building projects... In 2006, funding per was a maximum of $6,000.
This is closed for 2007. Look for these annually in July-August.
The Energy Efficiency and Renewable Energy Outreach Grants provide funding to non-profit or
public organizations for outreach projects to promote and market 1) Solar Energy, 2) Wind Energy,
… and 4) ENERGY STAR Homes. In 2006, funding per project was a maximum of $50,000. This is
closed for 2007. Look for these annually in July-August.
Energy Tax Incentives.org
This web site provides some basic information on the energy code and the tax incentives.
www.deq.state.mi.us/documents/deq-ess-p2-green-funding.doc Pg 2
Financing Energy Efficiency -Rebuild America (community wide info)
This is a 86 page Department of Energy document that discusses different financing options,
including performance contracts.
EPA Green Building Re$ources
This is a 30 page list of potential funding sources compiled by EPA in October, 2000. Only the
relevant Michigan resources are listed. Although dated, it may provide ideas of where to locate
Fisheries See DNR above
Historic buildings are tangible links with the past. They help give a community a sense of
identity, stability and orientation. The federal and state governments encourage the preservation
of historic buildings through various programs including federal and state income tax incentives
and grant programs to support the rehabilitation of historic and older buildings. The State
Historic Preservation Office (SHPO), Michigan Historical Center, Michigan Department of
History, Arts and Libraries administers these financial incentive programs. Information on these
programs can be found on the SHPO website at www.michigan.gov/hpcredit
MDEQ presently manages 3 stormwater funding programs under non-point source. All three are
announced on about an annual basis. The funding round for 2007 should be announced in
October or November on the website
Trails and other Green Infrastructure (Health)
Active & Healthy Living
Green building may support an increase in access to healthy choices, healthy eating and
physical activity. Will the project --Help employees stay active (provide a walking trail)?
Provide an herbal garden? Expand a community recreation trail? Improve walking trails
to community grocers or farm markets? To determine if funding is available in your area,
contact your local county health department.
DNR Natural Resources Trust Fund
The objective is for the acquisition and development of lands and facilities for outdoor
recreation or the protection of Michigan's significant natural resources. The DNR also has
a grant for trees planted in public areas. Arbor Day Mini-grants
www.deq.state.mi.us/documents/deq-ess-p2-green-funding.doc Pg 3
Energy Office, Department of Labor and Economic Growth
The Energy Office has Community Energy Project Grants up to $6,000 for public or non-
profit organizations that includes a Green Commuting category. This has funded a
community biking program. Grant solicitation is in the summer for projects developed
during the following year.
Community Foundation of Southeast Michigan – This region specific funding helps
“connect the communities of southeastern Michigan through the creation of a connected
green infrastructure, including biking and hiking paths…”
National Center for Biking - Ped & Bike Info Center
The National Center for Biking and the Ped and Bike info center has additional resources
such as a great image library for pedestrian designs.
Robert Wood Johnson Foundation
Robert Wood Johnson Foundation provides funding on health related issues. Their website
“Active Living By Design” www.activelivingbydesign.org and community walkability
may be of interest. Michigan‟s resources (no grants) on the issue are at:
Safe Routes to School (SR2S) Program
This is a movement to make it safe, convenient and fun for children to bicycle and walk to
school. Safe Routes to School initiatives also help ease traffic jams and air pollution, unite
neighborhoods and contribute to students‟ health and readiness to learn in school. Contact
the Governor's Council on Physical Fitness at (517) 347-7891.
Transportation Enhancement Activities (TEA) Department of Transportation
“Provision of facilities for pedestrians and bicycles, pedestrian and bicycle safety education
activities,” and the “conversion of abandoned railway corridors to trails,” are eligible funding
activities. Anyone can sponsor a project, but they must apply through an eligible applicant.
Eligible applicants include city and village road agencies, all county road commissions,
public transit agencies, the Michigan Department of Transportation, and the Michigan
Department of Natural Resources for qualifying rail/trail projects.
Applications are accepted year-round. The average match has been more than 30%.
Contact: Amber Thelen (517) 241-1456, ThelenA@michigan.gov
This is the Safe Routes to School web site but if you scroll down, it lists other trail funding
www.deq.state.mi.us/documents/deq-ess-p2-green-funding.doc Pg 4